Pakistan Covid Scam: Amid bankruptcy, 2 of 4 billion rupees of corona relief fund vanish without trace

Pakistani prime minister Shehbaz Sharif

Islamabad: In a major embarrassment for the Shehbaz Sharif-led Pakistani government, a recent inquiry has revealed financial discrepancies in the allocation of and expenditure on medical resources in the Corona Relief Fund (CRF).

This comes amid looming fears of a default as the country is going through a severe economic crisis.

Corona Relief Fund

Shortly after the onset of the COVID-19 pandemic, Imran Khan-led PTI government had established a Corona Relief Fund (CRF) to abate the detailing effects of the global pandemic.

While on one hand, the provincial administration has claimed that the fund was instrumental in assisting the government’s relief efforts during the pandemic, an inquiry carried out by the Khyber Pakhtunkhwa office of the National Accountability Bureau (NAB) has revealed financial discrepancies in the allocation of funds, The Express Tribune reported.

As many as PKR 4 billion in donations were raised through the Corona Relief Fund. However, the inquiry revealed that around PKR 2 billion worth of financial irregularities were spotted during the audit process.

Where did the money go?

According to NAB’s findings, despite the Shaukat Khanum Hospital and Research Center’s preference, funds designated for the CRF were improperly used from the exchequer for PCR and Rapid Antigen Testing (RAT) services, with a PCR contract worth PKR 450 million and a RAT contract worth PKR 370 million signed with a preferred local laboratory.

Moreover, a total loss of almost PKR 800 million was done through the purchase of expensive oxygen tanks and cardiac monitors during the relief phase.

Based on data from January 2021, the Director General of Health Services identified an unapproved expenditure of about Rs 37 million as payments made to district-level Rapid Response Teams, which were charged with collecting nasal samples from suspected patients. An additional Rs 4,000 per day was paid to the healthcare professionals who were already receiving their monthly pay checks from the government. Also paid Rs 3,000 per day were the drivers who took the Quick Response Teams to the testing sites, the report said.

Drivers of the Rapid Response Teams were also given Rs 3,000 per day.

In addition to the illegitimate payments made to the response teams, NAB sources also noted that a Grade 17 Drug Inspector was improperly given the authority to oversee the duties of a Grade 19 Monitoring and Evaluation officer during the initial phase of the pandemic.

“The accusations made and the numbers stated as irregularities by the NAB, Rs 204 crores, are grossly overstated and the report accusing us of corruption overlooks the state of emergency during the COVID-19 outbreak which necessitated such haphazard expenditures and measures,” said former minister of Khyber Pakhtunkhwa Taimur Saleem Jhangra in responding to the NAB report.

IMF bailout

Amid looming fears of a default, International Monetary Fund (IMF) said cash-strapped Pakistan must take steps to ensure that its high earners pay taxes and only the poor get the subsidies if it wants to function as a country.

In an interview with the German state broadcaster Deutsche Welle on the sidelines of the Munich Security Conference in Germany on Friday, IMF chief Kristalina Georgieva said Pakistan needs to take strong measures to avoid getting into a “dangerous place” where its debt needs to be restructured.

She said the IMF was very clear that it wanted the poor people of Pakistan to be protected, the Dawn newspaper reported.

(With inputs from PTI)

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